BILL NUMBER: SB 207	CHAPTERED  10/10/99

	CHAPTER   773
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 2, 1999
	AMENDED IN ASSEMBLY   JULY 7, 1999
	AMENDED IN ASSEMBLY   JUNE 28, 1999
	AMENDED IN SENATE   APRIL 19, 1999
	AMENDED IN SENATE   MARCH 25, 1999

INTRODUCED BY   Senator Peace

                        JANUARY 20, 1999

   An act to add Chapter 2.9 (commencing with Section 53398) to Part
1 of Division 2 of Title 5 of the Government Code, relating to
infrastructure financing districts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 207, Peace.  Infrastructure financing districts:  border zone.
   (1) Under existing law, redevelopment agencies are authorized to
pay the principal of, and interest on, indebtedness incurred to
finance or refinance redevelopment, from a portion of property tax
revenues diverted from other taxing agencies.  The portion of taxes
diverted is the amount attributable to increases in assessed
valuation of property in the redevelopment project area subsequent to
establishment thereof.  This method of financing is commonly known
as "tax increment" financing and is specifically authorized by
Section 16 of Article XVI of the California Constitution.
   Existing law also authorizes counties and cities to form
infrastructure financing districts, in accordance with a prescribed
procedure, to finance public capital facilities utilizing a similar
method of tax increment financing.
   This bill would similarly authorize counties and cities to create
infrastructure financing districts in the border development zone, as
defined, to finance public works in the Mexican border region.
   Because county officers would be responsible for the division of
taxes under the bill, the bill would impose a state-mandated local
program in the case of districts formed by cities, but the bill would
require all infrastructure financing districts to reimburse those
county costs.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 2.9 (commencing with Section 53398) is added to
Part 1 of Division 2 of Title 5 of the Government Code, to read:

      CHAPTER 2.9.  INFRASTRUCTURE FINANCING DISTRICTS IN THE BORDER
DEVELOPMENT ZONE
      Article 1.  General Provisions

   53398.  (a) The Legislature finds and declares that the North
American Free Trade Agreement has resulted in a dramatic increase in
trade with Mexico.  In 1998 companies in California exported over
$13.3 billion worth of goods to Mexico, and more than 80,000 jobs
throughout the state are the direct result of this trade.  This
increased trade has strained the inadequate public infrastructure in
the region just north of the international border.
   (b) The Legislature further finds and declares that there is a
significant opportunity for industrial development, including high
technology and biotechnology manufacturing, in the region along the
border.  However, this region lacks the public infrastructure
necessary to support new development or to provide for the rapid and
reliable delivery of supplies to, and distribution of products from,
companies throughout the state.
   (c) The Legislature finds and declares that the state and federal
governments have withdrawn in whole or in part from their former role
in financing infrastructure facilities, including highways, roads
and interchanges, sewage facilities and water reclamation works,
water supply and treatment works, flood control and drainage works,
schools, libraries, parks, parking facilities, open space, and
seismic retrofit and rehabilitation of public facilities.
   (d) The Legislature further finds and declares that the methods
available to local agencies to finance public works often place an
undue and unfair burden on buyers of new homes, especially for public
works that benefit the broader community.
   (e) The Legislature further finds and declares that the absence of
practical and equitable methods for financing both regional and
local public works leads to a declining standard of public works, a
failure to construct new public works needed to support new
commercial and industrial development in the region along the border,
a reduced quality of life and decreased safety for affected
citizens, increased objection to otherwise desirable development, and
excessive costs for homebuyers.
   (f) The Legislature further finds and declares that it is
equitable and in the public interest to provide alternative
procedures for financing public works and services needed to support
new commercial and industrial development in the region along the
border that would generate significant new employment opportunities.

   53398.1.  Unless the context otherwise requires, the definitions
contained in this article shall govern the construction of this
chapter.
   (a) "Affected taxing entity" means any governmental taxing agency
that levied or had levied on its behalf a property tax on all or a
portion of the property located in the proposed district in the
fiscal year prior to the designation of the district, but not
including any county office of education, school district, community
college district, or the Educational Revenue Augmentation Fund.
   (b) "Border development zone" means a strip of land three miles
wide with the international border with Mexico on the south, the mean
high tide of the Pacific Ocean on the west, and the border with the
State of Arizona on the east.
   (c) "City" means a city, a county, or a city and county.
   (d) "Debt" means any binding obligation to repay a sum of money,
including obligations in the form of bonds, certificates of
participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses,
or individuals.
   (e) "Designated official" means the city engineer or other
appropriate official designated pursuant to Section 53398.13.
   (f) "District" means an infrastructure financing district located
in the border development zone.
   (g) "Infrastructure financing district" means a legally
constituted governmental entity established pursuant to this chapter
for the sole purpose of financing public facilities.
   (h) "Landowner" or "owner of land" means any person shown as the
owner of land on the last equalized assessment roll or otherwise
known to be the owner of the land by the legislative body.  The
legislative body has no obligation to obtain other information as to
the ownership of land, and its determination of ownership shall be
final and conclusive for the purposes of this chapter.  A public
agency is not a landowner or owner of land for purposes of this
chapter.
   (i) "Legislative body" means the city council or board of
supervisors.
   53398.2.  (a) The revenues available pursuant to Article 3
(commencing with Section 53398.30) may be used directly for work
allowed pursuant to Section 53398.3 (including use as matching funds
to accomplish this work), may be accumulated for a period not to
exceed five years to provide a fund for that work, may be pledged to
pay the principal of, and interest on, bonds issued pursuant to
Article 4 (commencing with Section 53398.40), or may be pledged to
pay the principal of, and interest on, bonds issued pursuant to the
Improvement Bond Act of 1915 (Division 10 (commencing with Section
8500) of the Streets and Highways Code) or the Mello-Roos Community
Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311)),
the proceeds of which have been or will be used entirely for
allowable purposes of the district.  The revenue of the district may
also be advanced for allowable purposes of the district to an
Integrated Financing District established pursuant to Chapter 1.5
(commencing with Section 53175), in which case the district may be
party to a reimbursement agreement established pursuant to that
chapter.  The revenues of the district may also be committed to
paying for any completed public facility acquired pursuant to Section
53398.3 over a period of time, including the payment of a rate of
interest not to exceed the bond buyer index rate on the day that the
agreement to repay is entered into by the city.
   (b) The legislative body may enter into an agreement with any
affected taxing entity providing for the construction of, or
assistance in, financing public facilities.
   53398.3.  (a) A district may finance (1) the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of any real or other tangible property with an
estimated useful life of 15 years or longer that satisfies the
requirements of subdivision (b), (2) the planning and design work
that is directly related to the purchase, construction, expansion, or
rehabilitation of that property, and (3) the costs described in
Sections 53398.5 and 53398.31.  A district may only finance the
purchase of facilities for which construction has been completed, as
determined by the legislative body.  The facilities need not be
physically located within the boundaries of the district.  A district
may not finance routine maintenance, repair work, or the costs of
ongoing operation or providing services of any kind.
   (b) The district shall finance only public capital facilities that
provide significant benefits to the area of the border development
zone, including, but not limited to, all of the following:
   (1) Highways, interchanges, ramps and bridges, major and minor
arterial streets, major and minor collector streets, parking
facilities, and transit facilities.  Phased road widening projects
shall also be permitted.
   (2) Sewage collection, pumping, treatment and water reclamation
plants and interceptor pipes.
   (3) Facilities for the collection and treatment of water for urban
uses.
   (4) Flood control levees and dams, retention basins, and drainage
facilities.
   (5) Child care facilities.
   (6) Libraries.
   (7) Parks, recreational facilities, and open space.
   (8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
   (c) Any district that constructs dwelling units shall set aside
not less than 20 percent of those units to increase and improve the
community's supply of low- and moderate-income housing available at
an affordable housing cost, as defined by Section 50052.5 of the
Health and Safety Code, to persons and families of low and moderate
income, as defined in Section 50093 of the Health and Safety Code.
   53398.4.  (a) A district may not include any portion of a
redevelopment project area that is or has been previously created
pursuant to Part 1 (commencing with Section 33000) of Division 24 of
the Health and Safety Code, whether the creation is or was proper or
improper.  A redevelopment project area may not include any portion
of a district created pursuant to this chapter.
   (b) A district may finance only the facilities or services
authorized in this chapter to the extent that the facilities or
services are in addition to those provided in the territory of the
district before the district was created.  The additional facilities
or services may not supplant facilities or services already available
within that territory when the district was created but may
supplement those facilities and services as needed to serve new
developments.
   (c) A district may include areas that are not contiguous.
   53398.5.  It is the intent of the Legislature that the area of the
districts created be substantially undeveloped, and the
establishment of a district should not ordinarily lead to the removal
of existing dwelling units.  If, however, any dwelling units are
proposed to be removed or destroyed in the course of private
development or public works construction within the area of the
district, the legislative body shall do all of the following:
   (a) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons or families of low or moderate income, of an equal number of
replacement dwelling units at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed were inhabited by
persons or families of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
   (b) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons of low or moderate income, a number of dwelling units that is
at least one unit but not less than 20 percent of the total dwelling
units removed at affordable housing cost, as defined in Section
50052.5 of the Health and Safety Code, within the territory of the
district if the dwelling units removed or destroyed were not
inhabited by persons of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
   (c) Provide relocation assistance and make all the payments
required by Chapter 16 (commencing with Section 7260) of Division 7
of Title 1, to persons displaced by any public or private development
occurring within the territory of the district.  This displacement
shall be deemed to be the result of public action.
   (d) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income does not
take place unless and until there are suitable housing units, at
comparable cost to the units from which the persons or families were
displaced, available and ready for occupancy by the residents of the
units at the time of their displacement.  The housing units shall be
suitable to the needs of these displaced persons or families and
shall be decent, safe, sanitary, and otherwise standard dwellings.
   53398.6.  Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district or the adoption of an
infrastructure financing plan, including a division of taxes
thereunder, shall be commenced within 30 days after the enactment of
the ordinance creating the district pursuant to Section 53398.21.
Consistent with the time limitations of this section, such an action
or proceeding with respect to a division of taxes under this chapter
may be brought pursuant to Chapter 9 (commencing with Section 860) of
Title 10 of Part 2 of the Code of Civil Procedure, except that
Section 869 of the Code of Civil Procedure shall not apply.
   53398.7.  An action to determine the validity of the issuance of
bonds pursuant to this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure.  However, notwithstanding the time limits specified
in Section 860 of the Code of Civil Procedure, the action shall be
commenced within 30 days after adoption of the resolution pursuant to
Section 53398.43 providing for issuance of the bonds if the action
is brought by an interested person pursuant to Section 863 of the
Code of Civil Procedure.  Any appeal from a judgment in that action
or proceeding shall be commenced within 30 days after entry of
judgment.
   53398.8.  An infrastructure financing district in the border
development zone is a "district" within the meaning of Section 1 of
Article XIIIA of the California Constitution.

      Article 2.  Preparation and Adoption of Infrastructure
Financing Plans

   53398.10.  A legislative body of a city may designate one or more
proposed infrastructure financing districts in the border development
zone pursuant to this chapter.  Proceedings for the establishment of
a district shall be instituted by the adoption of a resolution of
intention to establish the proposed district and shall do all of the
following:
   (a) State that an infrastructure financing district is proposed to
be established under the terms of this chapter and describe the
boundaries of the proposed district, which may be accomplished by
reference to a map on file in the office of the clerk of the city.
   (b) State the type of public facilities proposed to be financed by
the district.  The district may only finance public facilities
authorized by Section 53398.3.
   (c) State that incremental property tax revenue from the city and
some or all affected taxing entities within the district may be used
to finance these public facilities.
   (d) Fix a time and place for a public hearing on the proposal.
   53398.11.  The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the district.
   53398.12.  The legislative body shall direct the clerk to mail a
copy of the resolution to each affected taxing entity.
   53398.13.  After adopting the resolution pursuant to Section
53398.10, the legislative body shall designate and direct the city
engineer or other appropriate official to prepare an infrastructure
plan pursuant to Section 53398.14.
   53398.14.  After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53398.13 shall prepare a proposed infrastructure financing plan.  The
infrastructure financing plan shall be consistent with the general
plan of the city within which the district is located and shall
include all of the following:
   (a) A map and legal description of the proposed district, which
may include all or a portion of the district designated by the
legislative body in its resolution of intention.
   (b) A description of the public facilities required to serve the
development proposed in the area of the district, including those to
be provided by the private sector, those to be provided by
governmental entities without assistance under this chapter, those
public improvements and facilities to be financed with assistance
from the proposed district, and those to be provided jointly.  The
description shall include the proposed location, timing, and costs of
the public improvements and facilities.
   (c) A finding that the public facilities provide significant
benefits to the border development zone.
   (d) A financing section, which shall contain all of the following
information:
   (1) A specification of the maximum portion of the incremental tax
revenue of the city and of each affected taxing entity proposed to be
committed to the district for each year during which the district
will receive incremental tax revenue.  The portion need not be the
same for all affected taxing entities.  The portion may change over
time.
   (2) A projection of the amount of tax revenues expected to be
received by the district in each year during which the district will
receive tax revenues, including an estimate of the amount of tax
revenues attributable to each affected taxing entity for each year.
   (3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
incur debt.
   (4) A limit on the total number of dollars of taxes that may be
allocated to the district pursuant to the plan.
   (5) A date on which the district will cease to exist, by which
time all tax allocation to the district will end.  The date shall not
be more than 30 years from the date on which the ordinance forming
the district is adopted pursuant to Section 53398.20.
   (6) An analysis of the costs to the city of providing facilities
and services to the area of the district while the area is being
developed and after the area is developed.  The plan shall also
include an analysis of the tax, fee, charge, and other revenues
expected to be received by the city as a result of expected
development in the area of the district.
   (7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.
   (e) If any dwelling units occupied by persons or families of low
or moderate income are proposed to be removed or destroyed in the
course of private development or public works construction within the
area of the district, a plan providing for replacement of those
units and relocation of those persons or families consistent with the
requirements of Section 53398.5.
   53398.15.  The infrastructure financing plan shall be sent to each
owner of land within the proposed district and to each affected
taxing entity together with any report required by the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) that pertains to the proposed
public facilities or the proposed development project for which the
public facilities are needed.  The plan shall be made available for
public inspection.  The report shall also be sent to the planning
commission and the legislative body.
   53398.16.  The designated official shall consult with each
affected taxing entity, and, at the request of any affected taxing
entity, shall meet with representatives of an affected taxing entity.
  Any affected taxing entity may suggest revisions to the plan.
   53398.17.  The legislative body shall conduct a public hearing
prior to adopting the proposed infrastructure financing plan.  The
public hearing shall be called no sooner than 60 days after the plan
has been sent to each affected taxing entity.  In addition to the
notice given to landowners and affected taxing entities pursuant to
Sections 53398.11 and 53398.12, notice of the public hearing shall be
given by publication not less than once a week for four successive
weeks in a newspaper of general circulation published in the city in
which the proposed district is located.  The notice shall state that
the district will be used to finance public works, briefly describe
the public works, briefly describe the proposed financial
arrangements, including the proposed commitment of incremental tax
revenue, describe the boundaries of the proposed district, and state
the day, hour, and place when and where any persons having any
objections to the proposed infrastructure financing plan, or the
regularity of any of the prior proceedings, may appear before the
legislative body and object to the adoption of the proposed plan by
the legislative body.
   53398.18.  At the hour set in the required notices, the
legislative body shall proceed to hear and pass upon all written and
oral objections.  The hearing may be continued from time to time.
The legislative body shall consider the recommendations, if any, of
affected taxing entities, and all evidence and testimony for and
against the adoption of the plan.  The legislative body may modify
the plan by eliminating or reducing the size and cost of proposed
public works, by reducing the amount of proposed debt, or by reducing
the portion, amount, or duration of incremental tax revenues to be
committed to the district.
   53398.19.  (a) The legislative body shall not enact an ordinance
approving the infrastructure financing plan providing for the
division of taxes of any affected taxing entity pursuant to Article 3
(commencing with Section 53398.30) unless a resolution approving the
plan has been adopted by the governing body of each affected taxing
entity that is proposed to be subject to division of taxes pursuant
to Article 3 (commencing with Section 53398.30) has been filed with
the legislative body at or prior to the time of the hearing.
   (b) Nothing in this section shall be construed to prevent the
legislative body from amending its infrastructure financing plan and
adopting an ordinance approving the formation of the infrastructure
financing district without allocation of the tax revenues of any
affected taxing entity that has not approved the infrastructure
financing plan by resolution of the governing body of the affected
taxing entity.
   53398.20.  At the conclusion of the hearing, the legislative body
may, in a manner consistent with Section 53398.19, adopt an ordinance
approving the infrastructure financing plan, or the infrastructure
financing plan as modified, and creating the infrastructure financing
district with the full force and effect of law, or the legislative
body may abandon the proceedings.
   53398.21.  The legislative body may submit a proposition to
establish or change the appropriations limit, as defined by
subdivision (h) of Section 8 of Article XIIIB of the California
Constitution, of a district to the qualified electors of a district.
The proposition establishing or changing the appropriations limit
shall become effective if approved by the qualified electors voting
on the proposition and shall be adjusted for changes in the cost of
living and changes in populations, as defined by subdivisions (b) and
(c) of Section 7901, except that the change in population may be
estimated by the legislative body in the absence of an estimate by
the Department of Finance, and in accordance with Section 1 of
Article XIIIB of the California Constitution.  For purposes of
adjusting for changes in population, the population of the district
shall be deemed to be at least one person during each calendar year.


      Article 3.  Division of Taxes

   53398.30.  Any infrastructure financing plan may contain a
provision that taxes, if any, levied upon taxable property in the
area included within the infrastructure financing district each year
by or for the benefit of the State of California, or any affected
taxing entity after the effective date of the ordinance adopted
pursuant to Section 53398.20 to create the district, shall be divided
as follows:
   (a) That portion of the taxes that would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53398.20 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
   (b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity that has agreed to participate pursuant to Section
53398.19 in excess of the amount specified in subdivision (a) shall
be allocated to, and when collected shall be paid into a special fund
of, the district for all lawful purposes of the district.  Unless
and until the total assessed valuation of the taxable property in a
district exceeds the total assessed value of the taxable property in
the district as shown by the last equalized assessment roll referred
to in subdivision (a), all of the taxes levied and collected upon the
taxable property in the district shall be paid to the respective
affected taxing entities.  When the district ceases to exist pursuant
to the adopted infrastructure financing plan, all moneys thereafter
received from taxes upon the taxable property in the district shall
be paid to the respective affected taxing entities as taxes on all
other property are paid.
   53398.31.  All costs incurred by a county in connection with the
division of taxes pursuant to Section 53398.30 for a district shall
be paid by that district.

      Article 4.  Tax Increment Bonds

   53398.40.  The legislative body may, by majority vote, initiate
proceedings to issue bonds pursuant to this chapter by adopting a
resolution stating its intent to issue the bonds.
   53398.41.  The resolution adopted pursuant to Section 53398.40
shall contain all of the following information:
   (a) A description of the facilities to be financed with the
proceeds of the proposed bond issue.
   (b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
proposed bond issuance.
   (c) The maximum interest rate and discount on the proposed bond
issuance.
   (d) A determination of the amount of tax revenue available or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.
   (e) A finding that the amount necessary to pay the principal of,
and interest on, the proposed bond issuance will be less than, or
equal to, the amount determined pursuant to subdivision (d).
   (f) The date, hour, and place at which any person may appear
before the legislative body and object to the proposal to issue
bonds.
   53398.42.  The clerk of the legislative body shall publish the
resolution adopted pursuant to Section 53398.40 once a day for at
least seven successive days in a newspaper published in the city or
county at least six days a week, or at least once a week for two
successive weeks in a newspaper published in the city or county less
than six days a week.
                                                          If there
are no newspapers meeting these criteria, the resolution shall be
posted in three public places within the territory of the district
for two succeeding weeks.
   53398.43.  (a) At the hour set in the required notice, the
legislative body shall proceed to hear and pass upon all written and
oral objections.  The hearing may be continued from time to time.
The legislative body shall consider all evidence and testimony for
and against the proposal to issue bonds.
   (b) At the conclusion of the hearing, the legislative body may
approve the issuance of bonds by adopting a resolution that shall
provide for all of the following:
   (1) The issuance of the bonds in one or more series.
   (2) The principal amount of the bonds, which shall be consistent
with the amount specified in subdivision (b) of Section 53398.41.
   (3) The date the bonds will bear.
   (4) The date of maturity of the bonds.
   (5) The denomination of the bonds.
   (6) The form of the bonds.
   (7) The manner of execution of the bonds.
   (8) The medium of payment in which the bonds are payable.
   (9) The place or manner of payment and any requirements for
registration of the bonds.
   (10) The terms of call or redemption, with or without premium.
   53398.44.  The legislative body may, by majority vote, provide for
refunding of bonds issued pursuant to this chapter.  However,
refunding bonds shall not be issued if the total net interest cost to
maturity on the refunding bonds plus the principal amount of the
refunding bonds exceeds the total net interest cost to maturity on
the bonds to be refunded.  The legislative body may not extend the
time to maturity of the bonds.
   53398.45.  The legislative body or any person executing the bonds
shall not be personally liable on the bonds by reason of their
issuance.  The bonds and other obligations of a district issued
pursuant to this chapter are not a debt of the city, county, or state
or of any of its political subdivisions, other than the district,
and none of those entities, other than the district, shall be liable
on the bonds and the bonds or obligations shall be payable
exclusively from funds or properties of the district.  The bonds
shall contain a statement to this effect on their face.  The bonds do
not constitute an indebtedness within the meaning of any
constitutional or statutory debt limitation.
   53398.46.  The bonds may be sold at discount not to exceed 5
percent of par at public sale.  At least five days prior to the sale,
notice shall be published, pursuant to Section 6061, in a newspaper
of general circulation and in a financial newspaper published in the
City and County of San Francisco and in the City of Los Angeles.  The
bonds may be sold at not less than par to the federal government at
private sale without any public advertisement.
   53398.47.  If any member of the legislative body whose signature
appears on bonds ceases to be a member of the legislative body before
delivery of the bonds, his or her signature is as effective as if he
or she had remained in office.  Bonds issued pursuant to this
chapter are fully negotiable.
  SEC. 2.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
